In this article, we discuss the 5 best fast growth stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Fast Growth Stocks to Buy Now.
5. Revolve Group, Inc. (NYSE:RVLV)
Number of Hedge Fund Holders: 25
Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer. The company has developed a rabid fanbase within the young adult section of the society over the past few months and looks set to occupy that place for the foreseeable future as Redditors start noticing the stock as well.
Revolve Group, Inc. (NYSE: RVLV) posted earnings for the third quarter on November 3, reporting earnings per share of $0.22, beating estimates by $0.07. The revenue over the period was $244 million, beating predictions by $29 million.
At the end of the third quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $229 million in Revolve Group, Inc. (NYSE: RVLV), up from 22 in the preceding quarter worth $211 million.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Revolve Group, Inc. (NYSE:RVLV) was one of them. Here is what the fund said:
“Revolve is a leading, next-generation online retailer of apparel, accessories, and beauty for fashion-forward people. During the pandemic, Revolve pivoted its offerings and strategy to adapt to the new normal. The company expanded into adjacent categories like beauty, activewear, and intimates, enabling it to serve its customers’ more immediate needs, increase wallet share, and touch more aspects of their lives. This strategy shift was a success. The company delivered record profitability and free cash flow during Q4 2020.
The leadership team intends to use this strong position to prioritize several key strategic investments as the world recovers from COVID-19, including strengthening their Owned Brands portfolio, expanding marketing, and accelerating brand building around the globe. The company reported a record high Net Promoter Score (NPS) for 2020. In geographies where COVID-19 is considered generally under control, the company has seen a return of customer demand for their traditional product categories as well.”
4. Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH)
Number of Hedge Fund Holders: 29
Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) is a biopharma firm that develops drugs for the treatment of cancer. The company recently announced that it had obtained regulatory approval in Europe for Qinlock, a drug for the treatment of gastrointestinal stromal tumors.
HC Wainwright analyst Andrew Fein has a Buy rating on Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) stock with a price target of $15. In a recent investor note, the analyst appreciated the decision of the pharma firm to streamline commercial operations.
At the end of the third quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $493 million in Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH), up from 23 in the previous quarter worth $568 million.
3. Sprout Social, Inc. (NASDAQ:SPT)
Number of Hedge Fund Holders: 29
Sprout Social, Inc. (NASDAQ:SPT) provides social media management tools. The company beat market estimates on earnings for the third quarter recently and has also announced that it would be integrating WhatsApp into the application suite for business clients. The integration will help enterprises who use Sprout expand their reach by millions.
Piper Sandler analyst Clarke Jeffries recently maintained an Overweight rating on Sprout Social, Inc. (NASDAQ:SPT) stock and raised the price target to $155 from $104, backing the firm to deliver double digits growth till 2025.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Zevenbergen Capital Investments is a leading shareholder in Sprout Social, Inc. (NASDAQ:SPT) with 1.2 million shares worth more than $153 million.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Sprout Social, Inc. (NASDAQ:SPT) was one of them. Here is what the fund said:
“Sprout Social (is one of the) companies that have become go-to platforms for small and medium size businesses (SMBs) engaged in e-commerce and social media marketing, rebounded strongly in the quarter after being caught in the selloff among high-multiple growth names since Vaccine Monday. These and the portfolio’s other disruptors had thrived through the first part of the pandemic, leading us to trim positions into strength and reallocate cash into more attractively priced evolving opportunities and steady compounders that had been overly punished by lockdowns and a drop in economic activity.”
2. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 50
Coinbase Global, Inc. (NASDAQ:COIN) is a fintech firm catering to the crypto-economy. The stock stands to benefit in the long-term as crypto regulations are discussed since it is among the first movers at the market in the category and far ahead of the competition in terms of size.
Coinbase Global, Inc. (NASDAQ:COIN) recently announced that it would be acquiring cryptographic security company Unbound Security as it boosts spending on cybersecurity and plans to expand internationally.
Among the hedge funds being tracked by Insider Monkey, New York-based firm ARK Investment Management is a leading shareholder in Coinbase Global, Inc. (NASDAQ:COIN) with 6.9 million shares worth more than $1.5 billion.
In its Q3 2021 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:
“Coinbase (COIN): We established a new position in Coinbase, the dominant US crypto exchange and brokerage, this quarter. Given the misperceptions and early-stage nature of the industry, I thought it would be helpful for our partners’ understanding to share a report outlining our thesis, which we published on October 31st.
At a high level, we believe the crypto economy is in the middle of “crossing the chasm” into mainstream adoption & use cases, which will result in millions of mainstream users needing to transact in crypto in some form.
Coinbase is well positioned in the Western, regulated markets to capture this influx – considering their dominant market share / mindshare, their focus on the casual user and thus superior userexperience compared to alternatives, and their position as a “toll-booth” for this industry. Longer-term, we also believe Coinbase has “super-app” ambitions, and will be the primary gateway for both the general population and institutions to interact with the crypto economy…” (Click here to see the full text)
1. Atlassian Corporation Plc (NASDAQ:TEAM)
Number of Hedge Fund Holders: 60
Atlassian Corporation Plc (NASDAQ:TEAM) is an application software firm based in Australia. The emergence of a new COVID-19 variant has given a huge boost to the stock that had already been beating market expectations on growth. As the remote work revolution gathers pace, it has room to climb even higher.
Canaccord analyst David Hyne recently raised the price target on Atlassian Corporation Plc (NASDAQ:TEAM) stock to $500 from $325 and kept a Buy rating, highlighting that the company was raising market expectations for subscription growth.
At the end of the third quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $6 billion in Atlassian Corporation Plc (NASDAQ:TEAM).
Here is what Baron Opportunity Fund has to say about Atlassian Corporation Plc (NASDAQ:TEAM) in its Q2 2021 investor letter:
“Atlassian Corporation Plc is a software leader that makes tools that are used by thousands of teams worldwide, thus its ticker TEAM. Atlassian’s tools “help teams collaborate, build, and create together” (quote from Atlassian’s website), with an emphasis on designing, developing, and maintaining software, including JIRA for team planning and project management, Confluence for team content creation and sharing, HipChat for team messaging and communications, Bitbucket for team software code sharing and management, and JIRA Service Desk for team services and support use cases. Atlassian is the recognized market leader for information technology team planning and project management software, and has extended its product offering into tangential areas, such as those listed above. The company is in the midst of transitioning its business model to the cloud, which will help it drive faster product innovation, more seamlessly integrate its product families, and raise the effective price realization for its suite of products. Atlassian is run by its two visionary founders, has strong competitive advantages, and we think it should be able to grow revenue over 25% for many years with best-in-class free cash flow margins.”
You can also take a peek at 10 Best EV Materials Stocks to Buy and 10 Best NFT Stocks to Buy Now.
